Families are facing higher water bills after Anglian Water successfully appealed a decision to limit the amount it could pay shareholders.
Bills are to increase by more than 6pc from April and households of five people will see their average bill rise as much as 6.8pc.
It comes at a time when families are being warned to expect a huge rise in living costs this year, with energy bills and consumer prices rising, and other increases predicted.
The water regulator, Ofwat, originally imposed a limit on how much Anglian Water could increase customers' water bills by, which included a cap on the amount investors could receive.
However, the company appealed this decision, arguing it should be able to increase the amount it pays to shareholders. The water supplier also said it wanted a higher allowance to pay for improvements.
The company said today that its shareholders have not taken a dividend payment since 2018, specially to allow investment into projects which will make the region more resilient to the effects of climate change and a growing population.
Anglian Water launched an appeal with the Competition and Markets Authority and won its case, meaning customers' bills are allowed to rise by more than had originally been decided.
Norwich South Labour MP Clive Lewis, criticised the raise and accused the company of "twisting Ofwat's arm".
"I can see no justification whatsoever for how this company has twisted the regulator's arm to fill its shareholders' bank accounts further," he said.
“Anglian Water is a private monopoly owned by a conglomeration of global investment funds.
"We have no choice about where we get our water.
"It doesn't have to be this way. Water is already run for people-not-profit in Scotland, Wales, and French and German cities. In the Netherlands and Uruguay, private ownership of water is illegal."
The company Anglian Water said it launched the appeal because the earlier decision "would have significantly jeopardised our ability to ensure we could invest in the infrastructure we needed to make our region as resilient to the significant challenges posed by a growing population and a changing climate".
Earlier this month Anglian Water announced that part of the bill rise would pay towards its investment of £680m over the next 12 months to improve climate resilience, environmental protection and reducing leaks.
It said that this is the "largest investment ever planned for a single year" and will be spent across the entire East of England, which it said was one of the driest and fastest-growing parts of the country.
How much are Anglian Water bills rising by?
The amount average bills will rise by depends on the number of people in a home.
- A family of five will see their bill rise by 6.8pc, increasing it to £677.83 a year.
- A household of four will see bill rise by 6.7pc, costing £590.77.
- Households with three people will see their bill increase by 6.7pc, rising to £510.17.
- Couples will see a 6.6pc rise, increasing the bill to £416.66.
- A person living on their own will see a rise of 6.4pc and will pay £294.14 a year.
Unlike other utility suppliers, Anglian Water customers cannot shop around for a different water supplier. Instead, to lower water bills customers must look for ways of lowing their water usage, such as taking shorter showers.
The water supplier has urged customers that are struggling to pay their water bill to get in touch to arrange support to help make payments more manageable.
Some of the support the firm offers includes helping customers to access affordable tariffs, payment holidays or spreading costs by direct debit payments.
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